MuniMae suspends second-quarter dividend payment; credit market to blame

By Lisa Kerner

Charlotte, N.C., Aug. 15 - Municipal Mortgage & Equity, LLC will not pay a dividend for the second quarter of 2008 in order to conserve capital, the company said on Friday.

MuniMae also cited the "the current dislocation of the credit and debt capital markets."

The move is consistent with MuniMae's actions in the previous quarter, a company news release noted.

In May, MuniMae announced it was suspending its quarterly dividend distribution to protect the long-term prospects of the company given the impact of the credit and debt capital markets on MuniMae's business.

MuniMae filed a form 8-K with the Securities and Exchange Commission detailing the impact the market dislocation has had on MuniMae, its first-half production numbers and an update on its restatement process, according to the release.

It was previously reported in June that MuniMae was considering strategic alternatives to enhance shareholder value with the assistance of Lazard Ltd.

Possible alternatives included the raising of capital through the sale or recapitalization of business units and additional asset sales.

Baltimore-based MuniMae and its subsidiaries arrange debt and equity financing for developers and owners of real estate and clean energy projects.

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